Federal Government to Spend $10 Billion on Infrastructure

federal government to spend $10 billion on Infrastructure

The federal government has announced that it wants to accelerate infrastructure projects through the Canada Infrastructure Bank. The Residential and Civil Construction Alliance of Ontario (RCCAO) is pleased with the $10 billion that is earmarked for infrastructure initiatives but is calling for more focused investment on state-of-good repair projects which are badly needed in almost every community across Canada.

An article in the Globe News Wire stated that the RCCAO has done research on these infrastructure investments and have found that these investments have considerable short and long term impacts on the economy and job creation. Helping municipalities offset deficits that have accumulated due to the COVID-19 pandemic will have a positive job impact and will maintain a productive economy.

 

"We welcome this Growth Plan as it is a necessary step to the economic recovery of Canada. Building more resilient infrastructure and expanding broadband to underserved communities are worthwhile initiatives. We are hopeful that this announcement will be accompanied by other bold infrastructure investment measures. Maintaining infrastructure assets such as water and sewer systems and keeping transportation networks in a state of good repair is a necessary stimulus measure because it provides immediate economic impact and tends to be more labour intensive."

RCCAO executive director | Andy Manahan

 

The RCCAO is hoping that the Canada Infrastructure Bank will try to get the funding out as quickly as possible to take advantage of whatever good weather is left for infrastructure work. A more detailed project list is expected by the end of this year.

The construction sector in Ontario employs about 400,000 workers and is a key driver of the economy. Contractors are reporting that many municipalities are pulling back on tendering capital works projects because they are uncertain about federal funding coming down the pipe.

The RCCAO is a labour-management construction alliance and for 15 years it has been a leading industry advocate for infrastructure investment. It has commissioned more than 50 independent solutions-based research reports to help inform decision makers.

CBC News states that this infrastructure investment would include broadband, clean energy and agricultural projects and is expected to create 60,000 jobs. The $10 billion is part of the CIB's $35 billion pot for federal investments.

The plan includes the following five elements:

 

 - $2.5 billion for clean power to support renewable generation and storage and to transmit clean electricity between provinces, territories and regions, including northern and Indigenous communities.

 - $2 billion to help connect about 750,000 homes and small businesses to broadband in under-served communities.

 - $2 billion for large-scale energy efficient building retrofits.

 - $1.5 billion for agriculture irrigation projects to boost production, strengthen Canada's food security and expand export opportunities.

 - $1.5 billion to speed up the adoption of zero-emission buses and charging infrastructure.

 

At the ceremony for the announcement, conservative leader, Erin O'Toole, stated that he would scrap the infrastructure bank, calling it "nothing but a waste of taxpayer dollars." He said he would bring forward a different plan to create jobs and get projects built.

He accused Trudeau of making empty promises and slammed the government's progress on infrastructure projects. He stated that in five years, the Liberals have failed to get money out the door and shovels in the ground. 

Catherine McKenna, the Minister of Infrastructure and Communities stated that the pandemic created a time of crisis, but also a time of opportunity to rebuild with stronger, cleaner, more inclusive communities. She said the investments align with the federal vision to build clean, modern communities.

 

CSP Notices Wide

 

Posted by Judy Lamelza

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